Abstract
Firms devote large amounts of resources toward customer retention practices since relationship duration is a key driver in enhancing customer lifetime value. We posit that customer inertia plays an important role in determining service duration. In analysing service duration, we incorporate inertia into existing models that feature customer satisfaction, loyalty, and switching costs. A structural equation model is used to show the effect of latent mediation effect of inertia. We find that the mediating role of inertia is significant and the latent interaction effect of loyalty and inertia on service duration is also significant.
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